What were the advertising and related expenses for Black Bear Diner in the earlier year presented in the table?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
United States of America. The following table provides additional information about the Companyowned and franchised restaurants operating as of December 27, 2023 and December 28, 2022:
| 2023 | 2022 | |
|---|---|---|
| Franchised restaurants | 91 | 88 |
| Company-owned restaurants | 65 | 65 |
| Total | 156 | 153 |
The Company-owned restaurants are operated by Bear Tracks Holdings LLC (BTH), an entity under common control with the Company. The Company and BTH are owned by BBD Opco LLC (Parent). BBD Opco LLC is owned by BBD Intermediate Holdco, LLC (Intermediate) and for which Intermediate is ultimately owned by BBD Holdco LLC (Holdco).
The Company also operates a national advertising fund (NAF) which administers national, regional, and local advertising and marketing initiatives for the brand. The Company receives funds from Black Bear Diner branded restaurants approximating 1.00% of revenue. The Company physically segregates these funds to ensure that the funds are utilized specifically for advertising and oth
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner FDD, the company operates a national advertising fund (NAF) that manages advertising and marketing initiatives. Black Bear Diner restaurants contribute approximately 1.00% of their revenue to this fund. These funds are specifically used for advertising and brand development. The reimbursements totaled $118,881 for the year ended December 27, 2023. These reimbursements are netted within payroll and benefits expenses on the statements of income. The production costs of advertising are expensed when the advertisements are first aired or displayed, while all other advertising and promotional costs are expensed in the period incurred.
This means that a portion of the advertising expenses is used to reimburse the company for its costs, including salaries and internal costs related to administering the NAF. The financial statements reflect accounts and balances as of and for the fiscal years ended December 27, 2023, which contained 52 weeks.
For a prospective franchisee, this indicates that 1% of their gross sales will go towards the Marketing Fund. The franchisee is also required to spend no less than $5,500 for grand opening advertising sometime within one week prior and eight weeks following the opening of their Black Bear Diner restaurant. Franchisees must also spend no less than 1% of the previous month's gross sales on local advertising. Franchisees must submit all advertising and promotional materials to Black Bear Diner for prior approval.